{"id":2192,"date":"2024-08-07T10:01:07","date_gmt":"2024-08-07T15:01:07","guid":{"rendered":"https:\/\/l57hdw7csd.onrocket.site\/?p=2192"},"modified":"2024-08-07T12:08:24","modified_gmt":"2024-08-07T17:08:24","slug":"chg-spotlight-smart-shopping","status":"publish","type":"post","link":"https:\/\/chg.com\/es\/chg-spotlight-smart-shopping\/","title":{"rendered":"CHG Spotlight: Smart Shopping"},"content":{"rendered":"
CHG Materials Planning Team Saves Millions Without Cutting Coupons<\/strong><\/h5>\n

You know the feeling\u2026 you\u2019re hungry and when you check the fridge or pantry there\u2019s little there. Like it or not, it\u2019s time to reload your stock. Whether it\u2019s whole fruit or Froot Loops, a trip to the grocery store is in order.<\/p>\n

The same holds true for CHG. We do food. When you\u2019re in this business, the pantry can\u2019t be empty. Your stock can\u2019t go low. If it does, someone may go hungry \u2013 production lines won\u2019t run and customers won\u2019t be served.<\/p>\n

Someone at CHG has to do the \u201cshopping.\u201d Our Materials Planning Teams \u2013 in Texas, Kansas and Missouri as well as eastern Canada \u2013 make sure plants have the raw materials and packaging they need to make and move goods through production to our customers and, ultimately, to your refrigerator or pantry.<\/p>\n

\"CHG

Kent Katsuda, Martha Camareno, Teresa Browning and Tinamarie Kern recognize and celebrate 51 days without a customer shortage in materials or packaging inventory. The team updates the number and rings a bell with each celebration of the streak.<\/p><\/div>\n

The Materials Side<\/strong><\/p>\n

Teresa Browning<\/strong> leads one of the two US corporate materials planning teams. Her team does the shopping for six plants \u2013 Denton, Langdon, Duncanville, Prosperity, Carlstadt and San Antonio. While you can make a quick trip to the store for tuna, Twinkies or toilet paper, Teresa and her team have to use software and spreadsheets to ensure the timely delivery of thousands of items to their plants.<\/p>\n

Plant inventory lists are long, from basics such as flour, salt and sugar to more unique ingredients like dehydrated tomato, conventional quinoa and potassium bromate.<\/p>\n

\u201cSome facilities have more than 300 different raw materials plus another 500 different packaging items,\u201d says Browning. \u201cOne facility may have over 900 different items to keep track of.\u201d<\/p>\n

The team begins each day checking each plant\u2019s inventory. Then they connect with schedulers at each plant to discuss any needs or challenges. If a material is running low, there\u2019s little time to hesitate. The team must find that material as soon as possible or production lines may not run as planned.<\/p>\n

\u201cIf we are running low, we\u2019re in crisis mode,\u201d Browning says. \u201cHow can we get more materials in? We reach out to suppliers immediately or see if another plant in our network can transfer it.\u201d<\/p>\n

This year, the team is focused on reducing customer shortages as a key performance metric. It\u2019s not uncommon for product shortages to occur with a customer, whether it\u2019s a grocery or restaurant chain or a food service distributor. Shortages may occur because of problems outside the scope of the Materials team \u2013 an order change, a damaged product, a forecasting error or a transportation issue. As long as \u201cOut of Stock Raw Material\u201d doesn\u2019t show up on the daily report, the Materials team can celebrate. The team recently celebrated 51 consecutive business days without a shortage!<\/p>\n

The Planning Side<\/strong><\/p>\n

Materials planning can be more of a quandary. As a planner, you strive to make sure your plants have enough stock but not too much. You also must consider when that material will arrive, how much space is available to store it, and when it\u2019s scheduled to run. All four have to align. No problem for Browning, who loves puzzles and has a knack for analyzing and solving problems.<\/p>\n

\u201cYou really have to pay attention to a lot of things. You can\u2019t just order a ton of materials so that you don\u2019t have to worry about it for a few months,\u201d she says. \u201cAt some plants, there may not be enough storage space. Or that material may not have a long shelf life.\u201d<\/p>\n

For example, Carlstadt (Tribeca Oven) recently began producing cheddar and onion bagels for a global coffee chain. Production requires not one but two refrigerated items. When fresh, cheese and onions expire in a matter of days and the plant has limited refrigeration space. The team has to determine how many shipments the plant can hold and if the materials will enter production before they expire.<\/p>\n

\u201cWorking that out can get kind of complicated,\u201d says Browning. \u201cYou can\u2019t bring it all in at once, so you have to plan it out strategically and work with the plant to ensure everything is set for production.\u201d<\/p>\n

Dollars and Sense<\/strong><\/p>\n

How many times do you go to the store and come back with more than you planned, especially at a warehouse club? Do you really need 45 rolls of toilet paper or a box of four dozen Pop Tarts? How long will it take to use those items and where are you going to put them?<\/p>\n

\"\"The same goes for CHG. In the past, a plant may have ordered 10,000 pounds of a material to avoid having to order again for six months. Sometimes that item would expire or collect dust on the warehouse floor and go unused. So the US materials planning teams had to take a fresh look at their plants\u2019 shopping habits.<\/p>\n

\u201cWhen I started here, we weren\u2019t always ordering quantities that made sense. The system had not been optimized,\u201d says Browning. \u201cWe evaluated every single material. Are we ordering a quantity that makes sense? Are we holding a safety stock that makes sense? We now review these assumptions quarterly to ensure changes in our business are met with changes in our purchasing behavior.\u201d<\/p>\n

In FY23, CHG had more than $36 million in raw material and packaging inventory sitting and waiting to be used in US plants. Months of critical review and implementation of new standard work processes generated radically improved outcomes, reducing inventory holding costs by nearly $8 million a year later.<\/p>\n

\u201cThat is money that was previously tied up that is not on our books anymore,\u201d says Browning, \u201cIt\u2019s money that can be spent elsewhere.<\/p>\n

\u201cWe simply identified areas of opportunity. It helps the plants because they are not overflowing with inventory. If we can be $8 million lighter, that\u2019s a significant impact on space as well.\u201d<\/p>\n

That\u2019s smart shopping.<\/p>\n

\u2013 Scott Wudel, CHG Communications<\/em><\/p>\n

Also read:<\/p>\n

CHG Spotlight: A Product Manager Can Wear Many Hats<\/strong><\/a><\/p>\n

CHG Spotlight: Rising to the Occasion<\/a><\/strong><\/p>","protected":false},"excerpt":{"rendered":"

CHG Materials Planning Team Saves Millions Without Cutting Coupons You know the feeling\u2026 you\u2019re hungry and when you check the […]<\/p>\n","protected":false},"author":11,"featured_media":2195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[43,42,46,44,47,45],"class_list":["post-2192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-chg-spotlight","tag-careers","tag-chg-spotlight","tag-inventory-value","tag-materials","tag-packaging","tag-planning"],"yoast_head":"\nCHG Spotlight: Smart Shopping - C.H. 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